Greetings to our Constituents, fellow Floridians, and all Americans. It is time for our weekly update.
My wife, Angela, and I bid farewell this week to two constituents who were very dear friends. One was a highly accomplished businessman and stalwart conservative, Larry Day. May God bless you Larry, and may God bless your wife Sharon. We will miss you.
Our other dearly departed friend was Mrs. Greta Sussman, an American patriot. Greta was so warm and kind to Angela and our daughters, especially when she invited our family to her home for Friday Shabbat dinner. It was very special. To her husband and former Mayor of Hillsboro Beach, Chuck,I want to say that Angela and I will always be here for you and your lovely family.
Americans like Larry Day and Greta Sussman are why I serve this great nation. They are indicative of that unique American exceptionalism and indomitable spirit that never surrenders. As we go forward as a nation, it is that indomitable spirit that will guide us back to the greatness that we know is achievable. An integral subset of that indomitable spirit is our American entrepreneurial drive, which has fueled our free market and enterprise system and given birth to unprecedented economic growth, innovation, ingenuity, and investment.
Still, today's report of a 2.0 percent GDP growth for the third quarter, is not reflective of what rugged individual industrialists can achieve. Our previous second quarter GDP growth was initially reported as 1.8 percent only to be downgraded to 1.3 percent. My concern is that this number will receive the same revision in mid-November.
The almost $1 trillion stimulus promised a GDP projection of 4.5 percent right now, as well as unemployment of only 5.8 percent. One disturbing aspect of today’s report is that the key driver of private sector job creation, real nonresidential fixed investment, declined for the first time since the first quarter of 2011. Real nonresidential fixed investment remains 7.2 percent lower than it was when the recession began in the fourth quarter of 2007. Also, the tiny 0.72 percentage point of today’s reported 2.0 percent annualized growth rate was the result of higher Federal Government consumption and investment. We all know the Federal Government is currently spending about 25 percent of our GDP with estimates from the Obama Administration’s Fiscal Year 2013 budget projecting it to grow to nearly 32 percent.
Today’s report cements America's current recovery in last place among post-World War II recoveries lasting more than a year. Since the recession ended in June 2009, real GDP has increased a total of 7.2 percent. The average total increase in real GDP over the comparable 13 quarters in the other recoveries was 16.8 percent. In the strong President Ronald Reagan recovery of the 1980's, real GDP increased a total of 19.6 percent. In comparison, President Reagan had the economy humming at 7.1 percent GDP growth at the same period of time in his presidential term. If the economy had grown at the average pace of the other post-World War II recoveries, real GDP would be $1.2 trillion higher (based on 2005 dollars). A Reagan-style recovery would have produced an economy with $1.6 trillion more than the current recovery (again, based on 2005 dollars).
A bigger economy would mean more job creation and higher federal revenues. If the economy had grown at the average pace of the other recoveries, and revenues had returned to a Fiscal Year 2007 level relative to GDP, the budget deficit would have been reduced by more than half. In other words, we would currently have a budget deficit of only $230 billion, rather than $1.1 trillion. Sadly enough, the debt is taking the opposite growth path, which is why we have an upside-down debt to GDP ratio.
Lastly, we continue to learn more about the incident in Benghazi, yet we hear no response or explanation from President Barack Obama. I remember the University of North Carolina basketball team, under Coach Dean Smith, used a tactic called, “four corners.” It was a stall tactic implemented, particularly in the second half, since there was no shot clock to run down the clock.
It is evident by his appearances on those really tough media outlets like Inside Edition, Daily Show, Late Night, Tonight Show, and MTV that President Obama, a basketball enthusiast, learned about using the four corners. But there’s one difference. The President’s team has no lead on the scoreboard, and the American people have the ball. The only question is, will they slam dunk?
Steadfast and Loyal,
Highlights of the Week:
- Monday, 22 Oct; visited Thermal Concepts Company in Davie which develops high capacity commercial HVAC systems to discuss tax and regulatory policy effects on small business growth, hat tip to Larry Maurer; visited The Learning Experience, at their headquarters in Boca Raton, hat tip to Richard and Michael Weissman for hosting us to discuss their concerns with business growth and expansion.
- Tuesday, 23 Oct; visited Viesel Fuel in Stuart at the request of President/CEO Stu Lamb, an amazing company which takes used cooking and vegetable oils and converts into a diesel additive and ships out to refineries. Photos here. Stu is a former US Air Force test pilot who saw a need because of high gas prices for his vehicle fleet and through ingenuity and innovation, built a new business; addressed the residents at the Miles Grant Golf community in Port Salerno at a luncheon focusing on the Greatest Senior generation and the legacy which we must pass on to the next generation. We discussed their concerns on tax, healthcare, and MEDICARE/Social Security; visited an inner city after-school program led by Travis Pitts of Pitts Enterprises Inc. in West Palm Beach. I spent about an hour with young kids discussing their hopes, dreams, and the importance of education and reading.
- Wednesday, 24 Oct; addressed the Florida Bankers Association at their quarterly luncheon at the Kravis Center in West Palm Beach. We focused on the looming fiscal cliff, monetary policy, and the unintended circumstances of the Dodd-Frank Financial Reform legislation on small community banks; toured the Workforce Solutions center in Port St. Lucie to understand how they are attacking the high unemployment situation in the Treasure Coast region, I focused on veterans services. I also visited the Army and Marine Corps recruiters who are located adjacent to the facility- photo here; visited the Aegis Communications call center located next to Workforce Solutions where they have just hired 300 local residents, hat tip to Paula in HR. Photos here.
- Saturday, 27 Oct; plans to visit the traveling Vietnam War Wall in Martin County, my older Brother fought in Vietnam with Charlie Co, 1/26th Marine Regiment; will attend the Ft Pierce Gun Show to meet fellow gun owners and American Patriots; and drop by the Port St Lucie Fall Fest as we prepare for Halloween; finally rounding off the day in boots and jeans for the Indiantown Rodeo.
- Sunday, 28 Oct; will run my first half-marathon of the season, Oceanside Physical Therapy Halloween Half-Marathon in Jensen Beach. I am going to need physical therapy afterwards! Will speak at Truth Church in Ft Pierce and pray to God to ease my pain after running 13.1 miles; will attend the 10th Anniversary celebration of the Port St. Lucie Shooting Center, come by and shoot some rounds with me!
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